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Ethereum (ETH) has seen a correction of more than 10% since the high of the New Year in the middle of the market, recently falling below the support of $ 3,300. Despite the ongoing pullback, some analysts remain optimistic about ETH’s Q1 performance, suggesting that a new high is imminent.
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Ethereum Forms a Bullish Pattern
Ethereum broke its New Year’s gains today after falling below the $3,320 mark. Following the market recovery, the second-largest cryptocurrency by market capitalization fell 14% from Monday’s high of $3,744 to below the $3,300 support.
During the first rally of the year, the price of ETH recovered 20% in a downward correction, rising to pre-tracking levels for the first time in almost three weeks. However, the market pullback, which saw Bitcoin fall by 7.2% in 24 hours, sent Ethereum to the $3,210 level on Thursday morning. The $3,200-$3,300 price range served as a key support area for ETH throughout December.
After its recent performance, several analysts have suggested that the cryptocurrency is forming an important reversal pattern, which could send the price of ETH to a new high. On Wednesday, crypto analyst Rekt Capital noted that Ethereum is forming a multi-month Inverse Head and Shoulders pattern in the 1M period.
For the analyst, it is “obvious” that the $3,650-$3,760 area is “a major resistance area, developing just below $4,000, with the price making that resistance a Lower High that may act as a Neckline in the pattern.”
He said that “its terminus point is at the psychological level of $3,000,” adding that “any pullback near the $3,000 level could see Ethereum develop a right shoulder.”
Similarly, As Ethereum moved down the key $3,200 line, Miky Bull highlighted the same pattern, revealing that the 7,000 target is “coming.” According to the chart, the price of ETH could see an increase of 87.53% near the price range of $7,400-$7,500, based on a bullish setup.
No More ETH ‘Great Returns’?
Crypto analyst Ali Martinez also shared his opinion on the bullish pattern, asserting that a drop to $2,900 “will be very bullish” for ETH. The analyst said it would create “a great buying-the-dip opportunity to target $7,000 next!”
However, it is worth noting that the bullish pattern will be invalid if Ethereum falls below $2,800, where the left shoulder is forming.
Meanwhile, another market watcher shared the similarities between ETH’s performance in early 2024 and 2025, highlighting the King of Altcoins falling below its annual opening in January 2024 before rising the following month.
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He said, “I think it’s very important that you don’t mix a few days of red value action with a high time bias. I’m of the firm opinion that this is an annual open shake after some overeager participants stepped up too much, too early. I am very excited about H1 2025.”
Crypto Wolf analyst observes that there may be “more or less left,” suggesting that ETH could recover another 4% to 7% higher before aiming for all-time highs (ATH).
As of this writing, ETH is trading at $3,255, a decrease of 2.15% in the daily period.
Featured image from Unsplash.com, Chart from TradingView.com